IV

107TH CONGRESS

1ST SESSION H. RES. 151

Expressing the sense of the House of Representatives on the importance

of promoting fair, efficient, and simple cross-border tax collection regimes

that maintain market neutrality and promote free trade on all sales

distribution channels within a globally networked economy.

IN THE HOUSE OF REPRESENTATIVES

MAY 24, 2001

Mr. WELLER (for himself and Mr. MATSUI) submitted the following

resolution; which was referred to the Committee on Ways and Means

RESOLUTION

Expressing the sense of the House of Representatives on

the importance of promoting fair, efficient, and simple

cross-border tax collection regimes that maintain market

neutrality and promote free trade on all sales distribution

channels within a globally networked economy.

Whereas the Internet has transformed our information and

communication infrastructure, impacting every sector of

the United States and global economy;

Whereas the Internet’s emergence as an alternative sales distribution channel for virtually all goods and services has

revolutionized the way business is conducted, the way

consumers make choices, and the way transactions are

completed;
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Whereas the Internet’s emergence has also caused governments to reexamine and modify their methods of communicating with and providing services to citizens, as well

as the way in which they collect taxes from citizens;

Whereas the Internet’s facilitation of international cross-border trade offers a revolutionary opportunity to network

and expand national economies, creating a new global

networked economy;

Whereas governments’ tax policy decisions will greatly impact

the potential growth of this emerging global networked

economy;

Whereas tax policy decisions that create market distortions,

discourage transacting business through the Internet, or

impose greater administrative burdens on nonresident

sellers than on local sellers could stunt the potential

growth of the global networked economy, denying citizens

of nations worldwide the opportunity to enjoy higher

standards of living resulting from economic growth and

prosperity; and

Whereas tax policy decisions that maintain market neutrality

and provide for simple, efficient and fair tax rules that

balance sellers’ need for certainty with governments’ need

to collect revenues to fund services will promote rather

than stifle the emergence of the new global networked

economy: Now, therefore, be it

1 Resolved, That it is the sense of the House of Rep2 resentatives that—

3 (1) the Secretary of the Treasury should

4 proactively seek to identify and resolve tax policy
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1 issues that will globally impact cross-border trade

2 through the Internet; and

3 (2) the United States should work in good faith

4 with our trading partners to ensure that any tax col5 lection regimes that attempt to impose tax collection

6 obligations on sellers outside the borders of the tax7 ing jurisdiction promote the continued growth of

8 electronic commerce by—

9 (A) imposing no greater administrative

10 burdens or compliance obligations on Internet

11 sellers than on any other seller;

12 (B) providing simple and clear rules that

13 allow the seller to identify, with certainty, the

14 amount of the tax that must be collected, and

15 that limit a seller’s liability in situations where

16 the seller has made commercially reasonable ef17 forts to determine the correct tax;

18 (C) allowing sellers to rely on customer19 provided information available during the

20 course of a transaction to determine the appro21 priate taxing jurisdiction;

22 (D) taxing Internet sales the same as simi23 lar products sold through traditional, physical

24 distribution channels, including applying the
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1 same tax rates to online sales and extending ex2 emptions and thresholds to online sales; and

3 (E) incorporating rules that require sellers

4 and governments to respect the privacy inter5 ests of consumers.

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